PIEDMONT LITHIUM INC (PLL)
Share Price Analysis and Chart

21/11/2024

3

Upgrade to Neutral from Underperform

$0.21

13.51%

Sayona Mining and Piedmont Lithium have announced a 50/50 all-stock merger, accompanied by $40m equity raisings each and a conditional $69m placement via a revolving credit facility (RCF).

Macquarie views the transaction as a de facto takeover by Sayona Mining, given that the only producing asset, North American Lithium, is owned by Sayona.

The broker highlights management of the combined entity will predominantly come from Sayona, with the stock primarily listed on the ASX and secondarily on Nasdaq. Piedmont Lithium's operations are based in the US and Ghana.

Macquarie nearly doubles Piedmont Lithium's target price to 21c from 11c and upgrades the rating to Neutral from Underperform, citing the value-accretive removal of the offtake agreement enabled by the merger.

FORECAST
Macquarie forecasts a full year FY24 dividend of 0.00 cents and EPS of minus -2.50 cents.
Macquarie forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -2.30 cents.

17/10/2024

1

Speculative Buy

$0.35

89.19%

Canaccord Genuity reviews fundamentals for base metals and electric vehicle materials and updates forecasts for relevant stocks under research coverage.

The broker increases its near-term nickel and zinc price forecasts to US$7.71/lb and US$1.25/lb, respectively, and lowers the near-term cobalt price to US$12.50/lb, and to US$13.61/lb for both 2025 and 2026.

The near-term lithium price forecasts for spodumene and chemicals fall by -9% and -14%, respectively.

For Piedmont Lithium, the broker is expecting a $46m cash balance at upcoming 3Q results. 

The Speculative Buy rating and 35c target are maintained.